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2w ago

San Jose First in California to Allow ADUs to Be Sold as Condominiums

Mandatory fee-free homeowners-association agreements set property boundaries with guidance offered by the new ADU Ally program.

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File photo of an accessory dwelling unit that was made using four cargo containers in a Menlo Park backyard. On Thursday, San Jose approved the state’s first backyard ADU to be sold as a condominium.
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Overview

  • The policy implements AB 1033, a 2024 state law that lifted the ban on selling ADUs and entrusted cities with defining sale rules.
  • San Jose’s inaugural condo-style ADU, approved on Josefa Street near downtown, can now be marketed separately from its main house.
  • City data indicate ADUs made up about 20% of the 7,500 new homes added in San Jose over the past six years.
  • Alpha Real Estate reports roughly 100 ADU condo projects in its development pipeline, with sale prices projected in the several-hundred-thousand-dollar range.
  • Berkeley, Santa Cruz and San Francisco are among other Bay Area cities considering their own measures to permit ADU condo sales.